- Hedge funds with artificial intelligence capabilities showed competitive edge over investors that didn’t use AI
- Top reason given for using algorithms is to reduce market impact
- The fund offers investment opportunity capitalizing on crypto volatility and powered by proprietary trading algorithms
Artificial intelligence (“AI”) is entering the world of finance — with impressive results. According to a recent “Institutional Investor” article, hedge funds that use AI returned almost triple the global industry average (https://ibn.fm/XoDrA). With that as a backdrop, DigiMax Global’s (CSE: DIGI) (OTC: DBKSF) just-launched Cryptocurrency Hedge Fund could not have come at a better time.
“Hedge funds with artificial intelligence capabilities showed a huge competitive edge over investors that didn’t use AI, new research indicates,” the article stated. “AI-led hedge funds produced cumulative returns of 34 percent in the three years through May, a report Tuesday from consulting and research firm Cerulli shows. That compares with a 12 percent gain for the global hedge fund industry over the same period.”
The article quoted Justina Deveikyte, associate director of European institutional research at Cerulli: “There has long been suspicion of the ability of AI to react to unexpected events, such as the coronavirus pandemic. . . . “But there is now a sense that the technology has advanced to the point where it is better able to adapt to unforeseen scenarios via the ever-growing amount of market data available.”
High volatility has always been part of the investment scene, with most investors understanding that risk. But that doesn’t stop them from looking for ways to lower that risk. A 2020 article released by “The Trade” reported that in an algorithmic trading survey taken before the COVID-19 pandemic, the top reason given for using algorithms is to reduce market impact (https://ibn.fm/SX2X1).
“Given the increase in market volatility and trading volumes since March 2020, it is striking that the pandemic has led to a greater realization of algorithmic trading in the industry,” the article observed. “The industry has made positive steps toward beginning to refocus on the quality of execution and achieving better outcomes for the end investor, even though room for improvement remains. Initial concerns brought by The Markets in Financial Instruments Directive (MiFID II) have evolved from managing the compliance requirements particularly around best execution to fine-tuning algorithmic trading strategies as a major component of e-trading usage.”
DigiMax’s CryptoCurrency Hedge Fund is representative of DIGI’s expertise in the AI world. The fund offers high net worth, institutional and family office clients a fully systematic long/short active investment into a basket of cryptocurrencies capitalizing on crypto volatility and powered by proprietary trading algorithms (https://ibn.fm/RsS6B). Led by an experienced investment and fund-management team, DigiMax’s actively managed fund provides an excellent opportunity for larger investors to gain exposure to cryptocurrencies in their portfolios. Through the use of CryptoDivine.ai and DigiMax’s artificial intelligence capabilities, investors can take advantage of the high volatility while reducing risk in this new fast-growing asset class.
DigiMax is supporting its mission to empower investors to safely invest in cryptocurrencies by harnessing the power of artificial intelligence. The company is committed to unlocking the potential of disruptive technologies by providing advanced financial, predictive, and cryptocurrency solutions across various verticals. DigiMax reveals actionable predictive insight across the financial and human world.
For more information, visit the company’s website at www.DigiMax-Global.com.
NOTE TO INVESTORS: The latest news and updates relating to DBKSF are available in the company’s newsroom at https://ibn.fm/DBKSF
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